‘Basic economy’ airline service squeezing business travelers

As more airlines embrace “basic economy,” many business travelers are feeling the pinch.

Bevan Lindsey doesn’t mind trying to save his company money when he flies for work. But lately he has been getting squeezed — literally.

Lindsey, an industrial salesman who is more than 6 feet tall, says he already pays out of his own pocket to get a seat with a little more leg room, at an average of $50 per flight. He worries that he soon might have to start self-subsidizing even more of his business travel, as airlines continue to add fees to even the most basic features of economy class while his employer wants him to find the lowest fares available.

Like many other work travelers whose bosses will not spring for business-class tickets, or even economy-plus fares, Lindsey is caught between corporate travel managers who want to save money and airlines that want to wring every last dollar from the least expensive seats on the plane.

“The company is definitely trying to move toward the cheapest option, and if not, you have to get approval,” Lindsey said of his employer.

The bind for business travelers like Lindsey may seem an unintended consequence of the airline industry’s race to the bottom in economy class. But travel consultants say it is partly a deliberate strategy by airlines, which are trying to nudge — or maybe shove — more passengers into paying business-class or economy-plus fares.

“The basic economy fares have the added restrictions, which the airlines have created to make them deliberately unattractive to business travelers,” said Henry Harteveldt, a founder of Atmosphere Research Group, an airline industry consulting firm.

The mainstream airlines, trying to compete with low-fare carriers like Spirit and Frontier, have adopted “basic economy” fares that strip out options like choosing seats and using the overhead bins.

United Airlines said in November that it would begin selling basic economy fares in the first quarter, starting with flights for the second quarter of the year. Initially, the airline announced last week, travelers will be able to buy basic economy tickets on routes between United’s seven domestic hubs and Minneapolis.

Those passengers will have no choice in seat assignment, be last to board and not be allowed to stow a carry-on bag in the overhead bins, although the airline won’t impose these last two restrictions on some loyalty program members or holders of some United-affiliated credit cards. An airline spokesman said passengers would be alerted at check-in about the carry-on regulations. Passengers will still be able to bring a personal item like a handbag that fits under the seat.

These ticket holders also will not earn frequent-flier miles that count toward their totals for premier status. Nor will they be eligible for free or even paid upgrades. And they will not be able to rebook or otherwise change flights.

American Airlines also announced last week that it would start selling its own version of basic economy fares in 10 domestic markets in February. The terms are similar to United’s, with some of the more onerous restrictions waived for elite loyalty members and holders of some airline-affiliated credit cards.

Delta Air Lines was the first legacy carrier in the United States to adopt a basic economy fare, in 2012, and it has revised it slightly since then. Its basic economy option prohibits ticket changes, seat selection and upgrades, although Delta travelers can still use the overhead bins and earn frequent-flier miles that count toward their status requirements.

Those in the business of corporate travel say they have been scrambling to address the changing fare restrictions and the complications they can pose in booking.

“It’s been kind of a surprise to a lot of travel managers in terms of: What does this entail, what does this include?” said Jeremy Quek, the air practice line lead of the Global Business Consulting division of American Express Global Business Travel.

Many travel managers also know that there can be false economy in insisting on basic economy tickets.

“I think the better travel programs out there realize it’s in their best interest to have travelers be able to earn status,” Koch said, noting that travelers with status often get fees waived for perks like checked bags, and that they are more likely to be eligible for the upgrades that let them sleep or be more productive in-flight.